$73 Million Exodus: BlackRock Bitcoin ETF Suffers Record-Breaking Outflow

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As a seasoned researcher who has witnessed the rollercoaster ride that is the cryptocurrency market, I find these recent developments intriguing. The massive outflows from two of the top performing Bitcoin ETFs in the US, BlackRock’s IBIT and Fidelity’s FBTC, have set a new record for the largest outflows since their launch.

A significant figure in the world of cryptocurrencies ended up in an uncommon chapter of its history, as it recorded its biggest withdrawals in months.

On December 20, the Bitcoin exchange-traded fund managed by BlackRock experienced an outflow of approximately $72.7 million, marking the end of its streak of inflows.

Largest Outflow On Record

It’s been revealed that the BlackRock Bitcoin ETF (IBIT) experienced its biggest withdrawal of funds since its debut in January of this year, according to recent data.

As reported by Farside Investors, their Bitcoin ETF saw the largest outflow ever recorded in December at approximately 72.7 million dollars. This significant withdrawal followed a day where no funds were added to the exchange-traded fund, causing unease among investors concerning the future of the exchange-traded fund.

Just like IBIT, the Fidelity Wise Origin Bitcoin Fund (FBTC) also experienced a record outflow of $208.5 million on December 18, a day prior to IBIT encountering the same situation.

On December 20th, analysts reported that FBTC experienced an additional withdrawal of approximately $71.9 million, marking the second consecutive day of withdrawals for the ETF.

In the U.S., iShares Barclays TIPS Bond Fund (IBIT) and Fidelity’s Extended Market Cap Focused Factor ETF (FBTC) are standing out as top-performing exchange-traded funds. After only a month on the market, their issuers managed to secure the 1st and 2nd spots among the top 25 ETFs based on assets under management.

Market analysts noted that the U.S. Spot Bitcoin ETF market’s consecutive two-day record outflows were primarily driven by the massive outflows seen at BlackRock and Fidelity recently.

On December 19th, it was revealed that the ETF market experienced a loss of approximately $671.9 million. The following day, December 20th, there were further outflows totaling an additional $277 million.

Some Investors Are Concerned

Worries arose among cryptocurrency investors regarding potential future developments of ETFs, as substantial withdrawals occurred at two leading ETF providers in the U.S. recently.

On the other hand, analysts suggested that it was not unexpected for challenges to arise for BlackRock and Fidelity because these global asset management companies have predominantly handled significant inflows of capital.

Some investors express worry that the latest advancements in Exchange-Traded Funds (ETFs) may mark a significant shift, potentially reducing the interest of institutional investors in holding Bitcoin.

Market analysts suggested that the downtrend may not persist anymore, pointing out that following a significant drop to $92,710 previously, Bitcoin seems to be recovering and regaining momentum once more.

Bitcoin’s Volume Down

According to experts who analyze trading, Bitcoin’s overall trading volume dropped significantly to approximately $59.5 billion, representing a 52% decrease – a figure that conflicts with the positive trend that cryptocurrency experienced following Donald Trump’s victory in the recent U.S. election.

During the crypto bull run, Bitcoin reached its all-time high of $108,000 per coin in November.

During the very same month, the U.S. Bitcoin Spot ETF similarly profited from the cryptocurrency boom as it reached an unprecedented $6.2 billion in total investments.

Currently, one Bitcoin is valued at approximately $95,359, representing a decrease of 1.3% over the past day. The overall market value of all Bitcoins combined is currently estimated at an impressive $1.9 trillion.

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2024-12-22 18:57